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"Microsoft Points" are the currency for Xbox Live. You can convert real money to points using the Xbox Live Marketplace or by purchasing a "Microsoft Points" gift card at a local game store. Currently, 800 Microsoft Points is equivalent to $10 US Dollars.

XBox Live comes in 3months and 1 year. The gold version is 19.99USD(3month), and 49.99USD(1 year). This allows you to play online with others and, if you have a good connection, it can be incredibly enjoyable.

Features: Aside from playing online, you can watch trailers and download demo's, purchase games for your XBox through microsoft points, as well as movies and downloadable content for the games you already play.

first off you need an xbox live subscription to use xbox live. Also I am assuming you have a broadband connection. So the best way is to purchase a router and then hook up your computers and xbox to that router via ethernet cable. Here are two links that should help you:http://www.wikihow.com/Hook-Up-Xbox-360-Live

Both consoles have advantages.
The Xbox 360 has a vast array of titles and has the biggest fan base of the two. If you connect the console to the internet, you can download games and movies through Xbox Live. You can also connect your PC to your Xbox 360 and use the console as a multimedia center using Windows Media Center.

The PS3 has a blu ray drive as standard, so you can watch blu ray movies through your PS3. DVD's are also upscaled up to 720p to improve the look of your movies. The PS3's online service is free, and allows you to download game demo's and downloadable content for games.
The Xbox 360's disadvantages are the fact you need to pay for access to Xbox Live, roughly £40 per year, but it does guarentee a reliable online service. Also earlier and cheaper models of the Xbox do not support full HD via HDMI.
The PS3 is very expensive and lacks quality titles. The console is also on a 10 year plan, so even though the console will outlast its rivals, it is likely to become outdated.
If you want to watch blu ray films and play games occasionally, go for the PS3. If you want a console with a lot of titles and a reliable online service, get the 360. Of the two I'd choose the 360, but in 2 years or so I might need to reconsider.